Consumers favour cash over credit during financial squeeze
The British Retail Consortium (BRC) has revealed that consumers are increasingly using cash rather than credit to pay for goods.
According to the BRC, cash is used for 60% of transactions, up from 54% this time last year.
The BRC's Cost of Collection survey highlights the costs that card companies impose on retailers for processing card transactions, and shows cash to be the most cost-effective way for retailers to accept payments.
A spokesman for the BRC said:
"Reports of the death of cash are premature. Cash is not only alive, it's thriving. Hard up customers are increasingly reluctant to spend money they haven't actually got in their hands. While total retail spending continues to grow, there is a widening gap between the amount spent in cash and the amount spent using cards, suggesting customers want to keep tight control of their finances."
